Thursday, 29 March 2018

THE dodgy project involving Air Zimbabwe (AirZim) and new airline
Zimbabwe Airways is getting murkier, amid allegations that some senior
government officials are deliberately sabotaging the debt-ridden
national flag carrier to pave way for the new private airline, which
will also be emblazoned with national colours.Aviation sources told the Zimbabwe Independent this week that Zim
Airways planes, which were bought using public funds provided by the
Reserve Bank of Zimbabwe, will soon land in the country. The planes
include four Boeing 777 bought in Malaysia and two Embraer ERJ145 bought
from the United States. Last year, the Independent reported that Transport minister Jorum
Gumbo and former AirZim chief operating officer Simba Chikore, who is
former president Robert Mugabe’s son-in-law, have been assisting in
setting up the private airline at the expense of the flag carrier,
AirZim, which fell under their purview and supervision, raising a
serious conflict of interest on their part.

There were indications that following Mugabe’s ouster via a military
coup in November last year, the deal had crumbled, as President Emmerson
Mnangagwa and his deputy Constantino Chiwenga, were opposed to the
arrangement. The involvement of their allies has, however, reportedly
softened their stance.Aviation sources say there was a well-calculated plan to destroy AirZim to the benefit of Zim Airways.“The initial plan was simple; use money from RBZ to buy planes;
register them under Zim Airways; get an air operator licence, then
compete with AirZim, but because AirZim has one plane and they have six,
AirZim would definitely lose out and eventually collapse,” said an
aviation source.“The plan has changed a bit and is now centred on ensuring that a
partnership between AirZim and Zim Airways is reached along the way. Zim
Airways will then bring in their planes and a bit of capital, thereby
assuming control of the company, which will result in board and
managerial changes.”The plan, aviation sources say, also involves ensuring that AirZim does not get funding support to cripple its operations.Gumbo this week, however, told the Independent that he had
facilitated Zim Airways to purchase aircraft from Air Malaysia after
AirZim failed to raise funds to buy the equipment. Information gathered shows that Zimbabwe Airways is owned by a local
firm, Zimbabwe Aviation Leasing Company (ZALC). An enquiry with the
Deeds Office in Harare indicated ZALC was registered under file number
3015/12. The file was, however, missing from the office, meaning the
directors could not be immediately ascertained. Aviation experts say
although it is saddled with debt, AirZim can be revived if the company’s
strategic turnaround plan is implemented.

AirZim immediately requires US$45 million to be operational,
according to AirZim’s Strategic Turnaround Plan (2018-2020). The airline
requires US$26 million to settle its foreign debt; US$6 million to buy
three Embraer ERJ145; US$4,6 million for International Air Transport
Association (IATA) clearing house joining fees, among other financial
obligations. Official documents show that as at December 2017, AirZim
had local debt totalling US$341 million.Among some of its weaknesses, according to the plan, are a shaky
balance sheet, debt overhang, antiquated equipment, thin route network,
high litigation, low level of automation and an absence from the IATA
clearing house.Locally-based German aviation expert Jerry Haas, who has been posting
accurate accounts on the Zim Airways project, recently posted on
microblogging website Twitter saying the Zim Airways deal was reaching
finality.
“#ZimbabweAirways back on track. Documentation on the final stage.
Should be cleared to take-off soon,” Haas twitted on March 21.

Initially Haas had tweeted that government would wind down AirZim
before allowing Zim Airways, which is emblazoned with national colours
to take to the skies. This initial arrangement had created a possible
conflict of interest between Gumbo and Zim Airways.Gumbo, however, insisted he would not allow the airline to collapse,
although it was failing to attract partners. He said negotiations
between AirZim and Ethiopian Airlines collapsed after the latter wanted
to set up a regional hub in Harare, that could relegate AirZim to local
routes, adding talks between Air Malaysia and the national flag carrier
also hit a snag due to AirZim’s weak balance sheet. “I will not allow AirZim to collapse. I approached 10 airlines to
partner us, but only had some discussions with Ethiopian Airlines and
Air Malaysia,” Gumbo said in an interview.

“I have other plans which came after the new dispensation, which is
making my life easier. I have some people contacting us to assist,
partner or purchase some planes. AirZim as a business, should be viable,
but for that to happen, staff culture and attitude should change. That
is what will assist us.” Zimbabwe Independent